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How Much Does Managed IT Services Cost?

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Rollout Technologies Staff

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With the constantly evolving technologies, managed IT services have become a crucial part of every online business. If we look at some of the statistical facts, the U.S. experiences 140,000 hard drive data loss and data crashes every week. Also, according to an IBM report, 95% of security breaches occur due to human errors. 

If you are also struggling to find the answer to how much managed IT services cost, then you have landed on the right article. Let’s dive in!

What is Managed IT Services?

Isn’t it great if any third-party organization could handle all your headaches for IT service, maintenance, and other IT responsibilities and come as a savior during tough times? These are managed IT services. They are also known as MSPs (managed service providers), on whom you can always trust and rely to get complex problems fixed.

Average Cost of Managed IT Services

Business owners often search and discuss the Managed IT service pricing. Obviously, we all want to grab the best deal for our IT infrastructure, but the real fact is commonly people experience variation of managed IT service costs from different IT service providers.

Our answer for the Average Cost of Managed IT Services is also: It depends! Every business is different and has unique requirements, from basic monitoring to complex maintenance. However, the current market price range for managed IT services in Canada fluctuates between CAD $120 and CAD $300 per user per month, depending upon the number of users, devices, level of service, technology, availability, and other additional features.

Factors Affecting Managed IT Services Pricing

Though most IT service providers have systematic plans and pricing ranges but, the pricing can still vary on several other factors, such as:

Number of Users/Devices

Understand this formula: more device/user=more complexity=more cost

Your workstations, laptops, tablets, servers, etc, across IT infrastructure need extra support and maintenance. The more devices or users are connected to the network, the more complex integration and maintenance it will be; it’s as simple as that.

Level of service required (e.g., 24/7 support, proactive monitoring)

24/7 support and proactive monitoring have become the basic necessities for IT businesses these days. The main focus is to deliver optimal service with desired functionality and support. Hence, there is no harm in investing in tailored managed IT services to match the business expectations.

Additional services or add-ons

If you want a special buffet of tech goodies, then be prepared to have a little fat bill. Extra offerings like cloud computing, disaster recovery, software license management, etc, can add additional charges to your quote, but you can still bargain and grab exciting discounts on these add-ons in the MSP contract. Usually, it gets cheaper depending on the add-on and the number of devices.

The Provider’s Reputation and Expertise

Not all glitters are gold. In the same way, not all managed IT services promising the best are actually good. Regretting the bad choice is literally an awful feeling; the same thing can happen when you choose IT services with a poor reputation to save a few bucks.

When you do market research about plenty of service providers, you will automatically learn to choose the MSP service provider that is best for your business. Always choose the top-reputed service providers and prefer going for quality.

Geographic Location

If you have offices at multiple locations, the pricing will eventually be higher as you will need remote management, security updates, a dedicated service team, anti-virus and anti-spam software, alerts and monitoring, and much more.

Moreover, different geographical locations have different demands, competitors, and their own operating expenses.

Managed IT Services Pricing Models

Flat-rate Pricing

Flat-rate pricing also refers to cake pricing. Here, the user generally pays a fixed service charge monthly or yearly for a comprehensive set of services. This pricing model works if you are clear about your IT infrastructure goals, needs, and the services actually required.

Per-device Pricing

Per-device pricing is one of the most used pricing models among MSPs. In this model, users are charged a fixed monthly fee for the number of devices connected to the client’s network. It is a simple and scalable choice as its pricing is based on the device you use, such as computers, servers, printers, and mobile devices, rather than the number of users.

Per-user Pricing

It is similar to per-user pricing and works best if you are buying specific IT services for your organization’s team. This pricing model is also best when users need to work with multiple devices.

Tiered pricing based on service levels

The tiered pricing model is used by many managed IT service providers as it is a win-win situation for both providers and clients. It offers different levels of services and add-ons, from basic to premium, with varying costs.

Finding the Right IT Service Provider

You know your business well, so it’s important for every business owner to learn the difference between reliable and risky. If you want to make the most out of your managed IT service investment, then consider points below to find the right one.

Research about reputations and customer reviews

Finding the right IT service provider is no less than a blind date. It’s like picking a trusted partner for your business who doesn’t ghost you when things get messed up. Most people today read reviews before buying anything.

Online reputation and customer reviews are the result of quality work and customer satisfaction. By reading reviews of plenty of service providers, you can pick the one that suits you best.

Get quotes from multiple providers

Have you ever done comparison shopping? Getting quotes from multiple service providers is the same thing. Comparing prices, services, and terms and conditions helps you make smart decisions and choose the best option that adds value to your organization.

Have a Look at Service Level Agreements (SLAs)

To experience the level of service you expect, you must go through the SLAs and other terms to understand the pricing structure clearly. SLA agreement includes uptimes and downtimes while using the service and a promise that they will always stand by whenever issues prompt.

Inquiring About the Scalability and Flexibility of Services

Keep in mind that flexibility and simplicity are crucial to using IT services happily. Make sure you don’t end up tieing with other extra services and long-term contracts. Choose the flexible IT services plans that align with your infrastructure goals and needs.

Lastly, do not ignore red flags; trust your intuitions before investing your hard-earned money on any managed IT services.

Benefits of Outsourcing IT Services

Access to Specialized Expertise

Who doesn’t like having a back of IT superheroes? Handling every unexpected problem with a quick solution is only possible by outsourcing IT services. You can’t afford to have an all-rounder expert guy in your office all the time; hence, outsourcing IT services is the best option, whether it’s cloud computing, software wizardry, system design, or anything else.

Cost Savings Compared to In-house IT Staff

When you hire someone for a specific task in your infrastructure, you need to provide full-time employment, a fixed salary, health benefits, and all other perks that a company is obligated to provide. But in outsourcing, you only pay for the service you actually want. Moreover, it also has many benefits like flexible pricing options, scalability according to needs, and help support.

Improved Security and Compliance

You can have a peaceful sleep when you choose trusted outsourcing IT services. They implement robust safeguarding techniques and meet security standards, which protect against cyber attacks and security breaches.

Focus on Core Business Activities

When you leave your IT services and maintenance tasks to professional IT experts, you can work more productively and focus on other infrastructure activities that actually matter.

Final Note

Hope you found this article useful in understanding the managed it services cost factors . Consider above points to make the right move by picking up the suitable IT service under your budget and needs. Getting the right managed IT service at a decent cost doesn’t have to be daunting. With the proper research and effort, you can definitely find the perfect fit for your organization.


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